The Asian Development Bank yesterday launched its RM3.8 billion (US$1.02 billion), 15-year Medium Term Note (MTN) programme in Malaysia's capital market after a two- year absence.

The ADB also launched its first issuance under the MTN programme amounting to RM500 million with a maturity of five years.

"ADB is very much pleased to have returned to the Malaysian capital market and is privileged to be the first supranational to have established this programme in Malaysia," Mikio Kashiwagi, ADB's treasurer said in a statement.

AmMerchant Bank Berhad is the lead arranger of the bond programme and lead manager for the first MTN issuance.

This issue marks the return of the ADB to the Malaysian market after the success of its earlier 400 million ringgit Putra bond issue in November 2004.

"Issuance under the MTN Programme will deepen the Malaysian bond market by providing local and international investors with the highest quality debt securities," said TC Kok, managing director of AmMerchant Bank.